Auckland property valuations delayed four months for data amendments
Auckland Council has announced an additional four-month delay in the release of the city’s capital valuations (CVs), pushing back the timeline as they make necessary amendments at the directive of the valuer-general.
Originally scheduled for release in October of the previous year, the updated CVs are now slated for completion by May, pending further data adjustments currently underway.
Insights into valuation adjustments
Nick Goodall (pictured above), CoreLogic’s head of research, said that CVs, recalculated every three years, help determine rate allocations for properties across Auckland, RNZ reported.
Despite common perceptions, significant shifts in CVs over such a period are uncommon.
Goodall noted that CVs comprise two components: land value and improvement value, which does not necessarily reflect the replacement cost of structures.
Factors influencing the delay
Recent events, such as the Auckland Anniversary Weekend floods in January 2023, have spotlighted discrepancies between CVs and insurance payouts, revealing CVs may not accurately reflect current market values.
Goodall speculated this discrepancy has prompted rigorous reviews of CV calculations.
Although stagnant valuations are anticipated, there’s a possibility they could decrease, further complicating the council’s valuation process.
Local market perspectives
Alexandra Vincent Martelli from Martelli and Co highlighted the intense focus New Zealanders place on CVs compared to Australian practices.
Martelli discussed the challenges buyers face in interpreting CVs, which can skew vendor expectations and complicate negotiations.
Unlike in New South Wales, where agents must disclose the same price indication to buyers and sellers, New Zealand agents typically refer buyers to the CV, leaving them to deduce the true market value independently, RNZ reported.
Auckland Council’s commitment to accurate valuations
Rhonwen Heath, Auckland Council’s head of rates, revaluations, and data management, asserted that the data was generally of good quality but required further refinement to ensure consistent application across various parameters like sales data and zoning.
This meticulous approach aims to guarantee that valuations reflect market conditions as of May 1, accurately and fairly.
Impact on ratepayers
Heath said that while revaluations do not affect the total amount collected from rates, they do influence how rates are distributed among property owners.
With the forecasted average rates increase for the 2025/2026 year at 5.8%, changes in property values relative to the Auckland average will determine individual rate adjustments.
The council’s thorough validation of property valuations aims to ensure fairness and accuracy in rate determination, reinforcing public confidence in the process, RNZ reported.
